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Post 8^th November 2016 everyone is speculating about the equity markets. The event of demonetisation got bigger from the stock market perspective, since it came after Donald Trump’s victory in the US elections. Most of the emerging equity markets are down post the victory of Donald Trump, in India we had double event and market is reacting to that.

Most of the analysts were initially negative about the situation now slowly moving into the positive territory each passing day. All the fundamental or technical analyst who are on TV shows always follow the market; they have been changing their stance now and recommending going long strategies.  So no one is sure and there is an uncertainty in the market place. Without any doubt there is a slowdown in terms of business and cash cycle, with cash crunch people are buying only essential items and it will defiantly have an impact on the growth. So the question is whether demonetisation is short term pain for a long term gain? Which company/sector will be impacted by this positively or negatively?

What one should do in these times:-

1. One should not take leveraged position and should stick to the basic rules of investing which is “Invest in companies which have proven track record of stable earning with sound management.”

2. SIP is the best strategy all the time and even time like these.

3. Interest rates are going to go down further, so one need to find avenues to invest is higher yield securities for longer time or invests in the equity market through SIP.

4. Always refrain from rumours and do your own homework before taking any action.

5. Focus on accounting and tax compliance more as this will be required in future if you get any questions from tax authorities.

6. History has shown that whoever has take calculated risk during these uncertain times got a better rewards, so ready to take some calculated risks.

7. Always do your own analysis and follow your gut rather than relying on someone blindly.

8. Increase the cash holding ratio, this will be beneficial to take the advantage of any market movement downwards.

9. Take close watch at currency movement and see which industry/ sector will be impacted by that.

10. Update the buy list with target price and whenever target is achieved, just grab the opportunity and buy the stock.